The first year contract rates for Health Net Blue and Gold and the Kaiser Plan for pay bands one, two and three will be incorporated into the contract. For the years 2013-2016, increases will be limited to no more than 20% of the previous year employee contribution and UC will assume the cost annually for increases above the 20%. This provides an incentive for the UC to keep annual premium increases as low as possible.

RETIREMENT

For retirement purposes, effective upon ratification and implementation of the salary increases, employees will begin contributing 1.5% of pay (minus $19) into the UCRP. In addition, the current employee contribution of 2% to the DCP will be redirected to the UCRP, for a total employee contribution of 3.5%.

In both July of 2012 and July 2013, employees will contribute an additional 1.5% of pay into the UCRP for a total of 6.5%. Employees hired on or after July of 2013 will be placed into a “New Tier” and will contribute 7% toward retirement.

Effective in July 2014, Teamster-represented employees in the 1976 tier will have an increase in their employee contribution to the UC Retirement System (UCRS) of 1.5% of salary. Employees in the 1976 tier currently contribute 6.5% of salary, and that will increase to 8% of salary. The reason for the increase is due to UCRP’s unfunded liability as a result of a downturn in the market. UC workers previously had little to no out-of-pocket expenses for their pensions due to a 20-year contribution 'holiday,' with contributions resuming in 2010. Many public employees have been paying anywhere from 7% to 9% toward retirement for the past 20-30 years. (Note that previous communications from the Union which stated that retirement contributions would not increase during the life of the contract were incorrect, and the Union regrets the error.) Employees in the 2013 tier currently contribute 7% of salary, and that contribution level will not change. Other unions with the UC will be paying 9%.

Retiree Health

Teamster-represented employees will benefit from the University’s recently-announced improvements to the retiree health benefits, to be provided to employees hired after January 1, 1990 and prior to July 1, 2013. These improvements apply to the Teamster-represented employees under the “me-too” language in Article 42 of our contract.

Previously, those who did not have a combination of age and years of service that totaled 50 would fall under the new eligibility requirements (rule of 50), as of July 1, 2013. Under the recently-announced changes, UCRP-eligible, policy-covered staff hired after Jan. 1, 1990 and prior to July 1, 2013 will remain under the rules in place when they were hired provided they do not have a “break in service” after July 1, 2013.

Years of Service

Percentage of UC Contribution

5 to 9

If age plus years of service is at least 75 then 50%; otherwise not eligible

10

50%

11 to 20

Increases from 50% by 5% per year to 100% at 20 year

This means that those employees who previously had been moved to the new 2013 eligibility rules because they were not vested in UCRP on June 30, 2013 or because their age plus years of UCRP service was less than 50 at that time will no longer be subject to the eligibility rules that went into effect on July 1, 2013. The Teamsters estimates that approximately 83% of our members will benefit from this retiree health benefit improvement. More details about retiree health benefits may be found at http://ucal.us/retireehealthfacts.